How Can Expats Get NPWP in Indonesia?
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According to the Indonesian tax office (Direktorat Jenderal Pajak), each resident individual in Indonesia must have personal tax identification numbers (NPWP). It’s a personal identification to carry out an individual’s taxation rights and obligations. This regulation also applies to expats.
More than just a tax identification number, an NPWP is also usually required for a variety of other activities such as buying a motorbike, opening a bank account, and getting a credit card in Indonesia. So, to help you obtain NPWP Indonesia here’s what you need to know beforehand.
Do you need an NPWP?
Some of you might wonder, “Do I really need an NPWP? What if I’m just going on a holiday in Indonesia?” Well, not all expats in Indonesia are required to obtain an NPWP. If you earn income in Indonesia, which is in excess of the non-taxable income, you are required to obtain an NPWP.
Foreigners who present in Indonesia for more than 183 days within 12 months or have the intention to live in Indonesia, obtaining NPWP is a must. How does one know if you have an intention to live in Indonesia? This will be seen by certain activities such as renting or owning a house for an extended period, applying for a work permit, and bringing family members to Indonesia.
So, if you stay in Indonesia for less than 183 days in 12 months, you may not be obligated to pay the Indonesian income tax. However, you still need to get an NPWP. It’s because,in order to prove that, you need to show your visa stamp and fill out FORM 1770 Individual and Monthly SSP. This is where you need to submit an income tax number, which is available on NPWP.
Documents to prepare
To obtain an NPWP, there are several documents you need to prepare. If you’re planning to get an Individual NPWP as an employee, you need to prepare your KITAP/KITAS and a letter of employment from the company you’re currently working at. But if you’re an entrepreneur, you need to bring your KITAP/KITAS, certificate of business domicile, a declaration letter that has been signed on stamp duty of IDR6,000, and a letter stating that you do run your own business.
Go to ereg.pajak.go.id
There are at least two ways to get an NPWP. One requires you to come to the tax office and another one is by going through an online procedure. We recommendthe later option since it takes less time and energy. Just visit ereg.pajak.go.id,click Sign Up, and submit your email. The system will send a verification link to your email, which you need to open. The link will direct you to a page that requires you to fill a data form.
You will be directed to the e-registration system, choose NPWP Submission. Follow each step and make sure you fill each form with the right information. Once you’ve finished filling out the form, the system will recommend the tax office to work on your NPWP request. Click the token menu to get a unique code as the filing requirement.
Sit back and wait!
Now just wait for a few days to find out if your NPWP request is approved or not. The confirmation will be sent to your email. If the tax office grants your request, your NPWP will be processed immediately and sent to the address you have given when filling out the online form.
If you’re generating income and you’re present more than 183 days during one year in Indonesia, you’re required to obtain an NPWP Indonesia. Without NPWP, not only is it illegal, but you will also subject to a final withholding flat tax of 20% on gross income, which is more than the applicable current tax rate in the country.